Broadcasters Eye Pay-TV Services To Compete With Cable, Satellite

Broadcasters are looking into rolling out pay-TV services that could pose new competition for cable and satellite TV operators, said Robert Sachs, president and CEO of the National Cable & Telecommunications Association (NCTA), during his opening remarks today at his group’s annual conference in New Orleans.

Traditional broadcasters are talking about using some of the digital spectrum the government has given them for free to launch subscription-programming packages to compete with cable and DBS, Sachs warned. Despite the threat, cable’s digital broadband platform gives it an unmatched capability to serve consumers’ entertainment, information and telecommunications needs, he explained.

No other industry — ranging from satellite to wireless and telephone to electric — has the “unique competitive strengths” of cable to satisfy consumers to the nth degree, Sachs said. However, DirecTV and EchoStar Communications‘ [DISH] Dish Network are formidable competitors, together serving more than 21 million subscribers, he added.